Silver steadies at £46.09 an ounce as markets await US inflation data

Silver was trading at around £46.09 a troy ounce early on Wednesday, according to GoldPrice.com, or roughly £1.48 a gram before dealer costs. That is almost exactly where it stood after Monday's heavy sell-off. The Rio Times reports that silver fell 4.6 per cent on Monday, then recovered 1.18 per cent on Tuesday to close at about $61.52 an ounce.

Tuesday's bounce followed weaker than expected US data. Job openings fell to 7.08 million in August and consumer confidence dropped to its lowest level since 2014. That cut market odds of an October Federal Reserve rate rise to about 51.5 per cent, down from almost 71 per cent a day earlier. Gains were limited, though, by a 10-year US Treasury yield of 5.25 per cent and a firmer dollar, both of which make metals that pay no interest less appealing.

The next test comes today with the US PCE inflation report, where headline inflation is forecast at 3.7 per cent, followed by Friday's jobs figures. Silver has also lagged gold in the rebound, leaving the gold silver ratio close to 68.

For UK buyers, most silver bullion attracts 20 per cent VAT, unlike investment gold, so premiums matter more. Comparing the all-in price, spot plus premium, VAT and delivery, is the best way to find value. This is market information, not financial advice.